Eagle Materials Inc (EXP)
Quick ratio
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 20,401 | 31,173 | 93,909 | 46,540 | 34,925 | 48,912 | 47,321 | 53,149 | 15,242 | 60,937 | 84,140 | 68,281 | 19,416 | 17,392 | 45,214 | 306,542 | 263,520 | 142,784 | 200,858 | 199,441 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 77,628 | 76,369 | 18,031 | 74,914 | 74,331 | — |
| Receivables | US$ in thousands | 222,352 | 184,122 | 248,823 | 281,033 | 212,895 | 195,899 | 252,976 | 250,057 | 211,319 | 178,009 | 236,966 | 237,314 | 183,478 | 179,551 | 214,618 | 187,411 | 149,971 | 144,367 | 205,809 | 318,273 |
| Total current liabilities | US$ in thousands | 245,004 | 223,881 | 312,227 | 290,550 | 239,409 | 225,513 | 224,535 | 229,697 | 212,889 | 208,300 | 223,321 | 228,635 | 207,551 | 193,675 | 188,645 | 189,013 | 169,354 | 163,061 | 163,085 | 200,033 |
| Quick ratio | 0.99 | 0.96 | 1.10 | 1.13 | 1.04 | 1.09 | 1.34 | 1.32 | 1.06 | 1.15 | 1.44 | 1.34 | 0.98 | 1.02 | 1.79 | 3.02 | 2.55 | 2.22 | 2.95 | 2.59 |
March 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($20,401K
+ $—K
+ $222,352K)
÷ $245,004K
= 0.99
The quick ratio of Eagle Materials Inc has shown fluctuations over the analyzed period. Starting at a healthy level of 2.59 on June 30, 2020, the quick ratio increased to 3.02 by June 30, 2021, indicating the company had sufficient liquid assets to cover its current liabilities in the short term.
However, the quick ratio declined gradually from that point onwards, reaching a low of 0.96 on December 31, 2024. This significant decrease may raise concerns about the company's ability to meet its short-term obligations using its most liquid assets like cash and accounts receivable.
The ideal quick ratio varies by industry, but generally, a ratio of 1 or higher is considered good as it suggests the company can meet its short-term liabilities without relying heavily on inventory. It is advisable for Eagle Materials Inc to closely monitor its quick ratio and take necessary steps to ensure it remains at a healthy level to maintain its financial stability.